Key Questions for Sellers (part 2)
The second in a four-part series answering the questions vendors ask most as they consider selling their goodwill — updated for 2026
How much is my practice worth?
The standard commercial answer — that a business is worth whatever a willing buyer will pay at a given moment — doesn’t quite hold for accountancy practices. For smaller firms, broadly those with gross fees under £350,000, current profitability matters less than most owners expect. Accountants tend to think in terms of the ‘going rate’ rather than a return-on-investment calculation, and buyers generally aren’t prepared to pay above it. Our standard going rate as of 2026 sits between 1.0x and 1.2x annual recurring fees — with strong competition among buyers, or a particularly profitable, well-run practice, able to achieve meaningfully more than that. Where you land within (or above) that range depends heavily on how many interested purchasers you can bring to the table at once, which is exactly the job of a good broker. For larger practices, profitability becomes a much bigger factor in the valuation, alongside a wider set of variables where specialist advice earns its keep.
Over what period can I expect payment to be made?
For a small practice, broadly under £150k, expect payment in two tranches: a proportion on completion, with the balance on the first anniversary. For a practice turning over £300k or more, expect three tranches — an upfront payment on completion, then two roughly equal instalments on the first and second anniversaries.
Should I expect to be paid on an earn out or can I be paid capital sum?
There’s no need to sell via an earn-out, where the purchaser effectively uses the firm’s own future profits to fund the payments to you. A capital sum, paid in the tranches described above, remains the standard method of acquiring goodwill in this market.
How can I be sure my identity won’t be discovered?
There are no guarantees. If your practice’s profile is being marketed by direct approach to accountants and promoted in the trade press, the care with which that profile is disguised is what stands between anonymity and disclosure. This is very much a question of your broker’s experience — anonymity should be protected until you personally give permission for your identity to be disclosed, on each and every occasion it might come up.